AUTHORITY MEMBERS
Joseph C. Smith, Chairman
Tom Griffin, Vice-Chairman
Bill Chase, Secretary
George R. Renner
Richard S. Walden
EX OFFICIO MEMBERS
Representative Mike Gleason
Senator Ken Bennett
ARIZONA WATER BANKING AUTHORITY
Final Minutes
December 18, 2002
Arizona Department of Water Resources
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Welcome/Opening Remarks
All members of the Authority were present except Senator Ken Bennett and Representative Mike Gleason.
Approval of Minutes
The Authority approved the minutes from the September 18, 2002 meeting.
Water Banking Staff Activities
Tim Henley, manager of the Authority, informed the Authority that 2002 has been a year of many firsts for the AWBA. For the first time, the Central Arizona Project (CAP) is monitoring end of year water usage to maintain Arizona at 2.8 million acre feet. Also, with regard to the AWBA Annual Plan of Operation (Plan), actual deliveries may exceed planned for the first time since 1997. Consequently, as the Authority goes into the reconciliation process with CAP, they will, for the first time, owe CAP additional money. This is due, in part, to another first, the interstate water banking that was done on behalf of Nevada in Pinal County. In June, the 2002 Plan was amended to include 40,000 acre feet of interstate storage. The actual amount could be higher due to the high demand for GSF participation in the Pinal AMA. The actual amount will be determined once the year-end reconciliation is completed.
Mr. Henley discussed the status of the agreement for water storage at the Central Avra Valley Storage and Recovery Project (CAVSARP). The AWBA did not participate with Tucson Water at CAVSARP in 2001 or 2002 because Tucson was fully utilizing the facility for their own purposes. The AWBA was informed that there would be 10,000 acre feet of storage available in 2003. Storage at the facility in 2003 would require an amendment to the existing agreement due to changes in operations and costs. It was decided that the existing agreement would be amended and extended instead of merely amended. The amendment/extension will be ready for approval at the March meeting.
Action on the Approval of the Agreement for the Development of Intentionally Created Unused Apportionment[1]
Mr. Henley informed the Authority that the Agreement for the Development of Intentionally Created Unused Apportionment (ICUA) is the last agreement needed to allow interstate water banking. The first agreement was signed in 2001 and the second was approved earlier in 2002 but would not be signed by the Authority until the ICUA was signed. The ICUA was previously approved by the Central Arizona Water Conservation District (CAWCD) at their December board meeting. George Renner stated that he still had many concerns, but would move for approval following some questions of Nevada. The motion was seconded. Mr. Renner first asked Kay Brothers of the Southern Nevada Water Authority what Nevada’s status would be if the Quantification Settlement
Agreement (QSA) failed. Ms. Brothers replied that they have four scenarios that are being examined to maximize their ability to get water if the QSA falls through. Mr. Renner stated that he would like to continue to be informed about this. Ms. Brothers stated that Nevada would keep the Authority informed and would amend their Water Resources Plan if the QSA is not completed.
The Authority unanimously approved the motion.
Discussion and Approval of 2003 Annual Plan of Operation
Mr. Henley began the discussion by informing the Authority that development of this Plan was unique because for the first time there was competition for the water available to the Authority. Mr. Henley reviewed the Plan and stated that staff could have developed a Plan that was limited to the 175,000 acre feet of water available. However, because the Salt River Project and the Gila River Indian Community ordered 200,000 acre feet that will only be used if dry conditions continue a Plan was developed that could use additional water that could become available without necessitating an amendment. The first six months of the Plan do not include any additional water and the latter half of the year stores the additional water only at underground storage facilities (USF). The USF have more flexibility regarding scheduling and will be able to utilize any additional water that becomes available. Mr. Henley specifically noted two things: (1) the Granite Reef Underground Storage Project (GRUSP) will store up to 25,900 acre feet of water that is unused by the Salt River Project; and (2) through discussion with Tucson Water, storage at CAVSARP is second to storage at Pima Mine Road.
Mr. Henley noted that the Plan would cost approximately $14 million and accrue about 253,000 acre feet of long-term storage credits. The Plan will be funded with withdrawal fees; however, no specific water management objectives have been identified.
The Plan was approved and adopted.
Mr. Henley informed the Authority that at the public meetings associated with the Plan there were requests for the AWBA to begin looking at recovery again. He asked the Authority for permission to begin examination of recharge/recovery and development of recommendations to be brought back to the Authority for action at the March meeting. Mr. Smith gave staff permission to proceed.
Mr. Henley, noting that Mr. Renner was leaving the meeting, made some comments regarding possible changes to the AWBA in the near future. He noted that the AWBA would have a new chairman due to the retirement of Mr. Smith. Additionally, Mr. Renner may not be the CAWCD Board President and the three appointed Authority members are up for re-appointment. Mr. Henley stated that the Authority should be proud of their accomplishments and that it was a pleasure working for them. Mr. Renner then left the meeting.
Discussion on Indian Firming
Herb Dishlip addressed the Authority and stated that the AWBA may be the appropriate entity to assist the state in meeting their obligation to firm for Indian water rights because the AWBA is authorized to do so, they are an agent of the state and already serve a similar role for M&I firming. He stated that the goal today was to see if there was any interest on behalf of the Authority with the next steps possibly being organization of a one day workshop and formation of a technical
committee to examine the issue further. Mr. Dishlip utilized a Power Point presentation to provide information regarding the background and obligation for firming.[2] Sandra Fabritz concluded the presentation with options and recommendations for the Authority. Copies of the Power Point presentation were included in the public handouts.
Bill Chase asked Mr. Dishlip if there was any sense of a time frame for this issue. Mr. Dishlip replied that there was not because it is unknown how long it will take for the federal legislation to pass. There is also a question whether state legislation should precede or follow the federal legislation. Mr. Dishlip said that there is some reluctance in the state legislature to get too far ahead of Congress, however, it is important to be ready. Richard Walden stated that he thinks it is better to be pro-active versus reactive and that he supports efforts to explore the role the AWBA may play. Mr. Henley said that staff would try to schedule the workshop sometime in February. Mr. Smith asked staff to keep the Authority informed regarding time and agenda for the workshop meeting.
Discussion Regarding Determination of the Authority’s Firming Goal
Gerry Wildeman discussed the draft resolution that was included in the public handouts. She informed the Authority that the resolution may be ready for action at the March meeting.
Discussion Regarding the Facility Inventory Update
Ms. Fabritz stated that the facility inventory, as presented, was based on the firming number identified in 1999 and that number could change as a result of the process discussed in agenda item number five. Changes in the firming number could impact the facility inventory and it’s recommendations. Consequently, the inventory will be re-analyzed with regard to the firming number that is ultimately identified.
Call to the Public
Jim Davenport of the Colorado River Commission of Nevada thanked the Authority for all of their cooperation with Nevada in the interstate water banking process.
The meeting adjourned at 11:25 a.m.
1
[1]Chairman Joseph C. Smith moved forward in the agenda to items requiring action because George Renner and Tom Griffin needed to leave the meeting early.
[2] Mr. Griffin left the meeting at this time.